<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)(2))
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
DPL Inc.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
DPL Inc.
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/X/ $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act
Rule 14a-6(i)(3)
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11
1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on
which the filing fee is calculated and state how it was
determined):
------------------------------------------------------------------------
4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
5) Total fee paid:
------------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
------------------------------------------------------------------------
2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
3) Filing Party:
------------------------------------------------------------------------
4) Date Filed:
------------------------------------------------------------------------
<PAGE>
DPL INC.
COURTHOUSE PLAZA S.W.
DAYTON, OHIO 45402
-------------------
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON APRIL 18, 1995
-------------------
TO SHAREHOLDERS OF
DPL INC.:
The Annual Meeting of Shareholders of DPL Inc. will be held at Edison
Community College, 1973 Edison Drive, Piqua, Ohio, on Tuesday, April 18, 1995,
at 10:00 a.m. Serving Miami, Darke and Shelby counties in West Central Ohio,
Edison Community College offers high quality, two-year degree programs to over
3,000 students each semester. Known for providing "Affordable Excellence",
Edison maintains a university-transfer program for virtually every bachelor's
degree major.
The business of the meeting will be:
1. To elect three directors of DPL Inc., each of whom shall serve for a term
of three years.
2. To transact such other business as may properly come before the meeting
or any adjournments thereof.
Holders of common shares of record at the close of business on February 17,
1995 are entitled to vote at the meeting.
If you are a holder of common shares and will not be present personally,
please mark, sign, date and return the enclosed proxy in the enclosed
self-addressed envelope as promptly as possible so that the presence of a quorum
may be assured and unnecessary expense avoided. Giving the proxy will not affect
your right to vote in person if you attend the meeting.
Your vote is important to us and we thank you for your prompt response and
continued interest in DPL Inc.
Sincerely,
[SIGNATURE]
STEPHEN F. KOZIAR, JR.
GROUP VICE PRESIDENT AND SECRETARY
Dayton, Ohio
March 1, 1995
<PAGE>
DPL INC.
COURTHOUSE PLAZA S.W., DAYTON, OHIO 45402
-------------------
PROXY STATEMENT
-------------------
This Proxy Statement is furnished to you and other shareholders of DPL Inc.
in connection with the solicitation of proxies by its Board of Directors to be
used at the Annual Meeting of Shareholders to be held at Edison Community
College, 1973 Edison Drive, Piqua, Ohio on April 18, 1995 at 10:00 a.m. and any
adjournments thereof. At the close of business on February 17, 1995, the record
date for the Annual Meeting, DPL Inc. had outstanding 106,951,623 common shares.
Only holders of common shares on such record date are entitled to vote at the
Annual Meeting, and each such shareholder is entitled to one vote per share.
All common shares represented by properly executed proxies received by the
Board of Directors pursuant to this solicitation will be voted in accordance
with the shareholder's directions specified on the proxy. If no directions have
been specified by marking the appropriate squares on the accompanying proxy
card, the shares will be voted "FOR" the proposal as listed. A shareholder
signing and returning the accompanying proxy has the power to revoke it at any
time prior to its exercise.
All expenses in connection with this solicitation of proxies will be paid by
DPL Inc. Proxies will be solicited principally by mail but directors, officers,
and certain other individuals specified by DPL Inc. may personally solicit
proxies. In addition, DPL Inc. has retained Georgeson & Co., a proxy
solicitation firm, to assist in the solicitation of proxies. DPL Inc. will
reimburse custodians, nominees or other persons for their out-of-pocket expenses
in sending proxy material to beneficial owners and will pay Georgeson & Co. a
fee of approximately $12,000, plus out-of-pocket expenses.
This Proxy Statement together with the accompanying proxy card were first
mailed to common shareholders on or about March 1, 1995.
1
<PAGE>
BUSINESS OF THE MEETING
1. ELECTION OF DIRECTORS
The Regulations of DPL Inc. provide for the classification of Directors into
three classes, with each class being of approximately equal size and in no event
shall any class contain fewer than three directors nor more than four directors.
The term of each directorship is three years and the terms of the three classes
are staggered in a manner so that only one class is elected by the shareholders
annually. The Board is presently authorized to consist of nine directors. These
nine directors are also directors of The Dayton Power and Light Company
("DP&L"), the principal subsidiary of DPL Inc. Three directors are to be elected
this year to serve until the Annual Meeting of Shareholders in 1998 or until
their successors are duly elected and qualified.
Unless specifically instructed to the contrary, the Proxy Committee named in
the enclosed form of proxy will vote all duly executed proxies "FOR" the
election of the nominees named below. Should any nominee become unable to accept
nomination or election, the Proxy Committee will vote for the election of such
other person as a director as the present directors may recommend in the place
of such nominee. The following information regarding the nominees and the other
directors continuing in office is based on information furnished by them:
2
<PAGE>
NOMINEES FOR DIRECTOR FOR THREE-YEAR TERM EXPIRING IN 1998
<TABLE>
<CAPTION>
COMMON SHARES
BENEFICIALLY
OWNED AT
JANUARY 31,
PRINCIPAL OCCUPATION AND OTHER INFORMATION 1995 (1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
THOMAS J. DANIS, Age 45, Director since 1989. 17,821
[PHOTO] Former Chairman and Chief Executive Officer, The
Danis Companies, Dayton, Ohio, construction, real
estate and environmental services.
Director: CSR America Inc.
Trustee: University of Dayton, Dayton Business
Committee, Dayton Foundation.
ALLEN M. HILL, Age 49, Director since 1989. 20,175
[PHOTO] President and Chief Executive Officer, The Dayton
Power and Light Company.
Director: Citizens Federal Bank, F.S.B., Dayton
Boys/Girls Club, Miami Valley Regional Planning
Commission, Ohio Electric Utility Institute.
Trustee: The University of Dayton, Hipple Cancer
Research Center.
W AUGUST HILLENBRAND, Age 54, Director since 1992. 7,663
[PHOTO] President and Chief Executive Officer, Hillenbrand
Industries, Batesville, Indiana, a diversified
public holding company with seven wholly-owned and
autonomously operated subsidiaries manufacturing
caskets, hospital furniture, hospital supplies,
high-tech security locks and providing funeral
planning services.
Director: Forecorp, Inc., Forethought Life
Insurance Company.
Trustee: Denison University, National Committee
for Quality Health Care, Batesville Girl Scouts.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
COMMON SHARES
BENEFICIALLY
OWNED AT
JANUARY 31,
PRINCIPAL OCCUPATION AND OTHER INFORMATION 1995 (1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
CLASS OF 1996
- -------------------------------------------------------------------------------------
JAMES F. DICKE, II, Age 49, Director since 1990. 58,689
[PHOTO] President, Crown Equipment Corporation, New
Bremen, Ohio, international manufacturer and
distributor of electric lift trucks and material
handling products.
Director: Regional Boys and Girls Clubs of
America, Plaid Holdings Company.
Vice Chairman: Trinity University Board of
Trustees.
Secretary: Culver Educational Foundation.
PETER H. FORSTER, Age 52, Director since 1979. 21,474
[PHOTO] Chairman, President and Chief Executive Officer,
DPL Inc.; Chairman, The Dayton Power and
Light Company.
Chairman: Miami Valley Research Foundation.
Director: Bank One, Dayton, NA, Amcast Industrial
Corp., Comair Holdings, Inc.
Trustee: F. M. Tait Foundation, MedAmerica Health
Systems Corp., Dayton Business Committee, Arts
Center Foundation.
JANE G. HALEY, Age 64, Director since 1978. 26,673
[PHOTO] President, Gosiger, Inc., Dayton, Ohio, national
importer and distributor of machine tools.
Director: Society Bank, NA, Advisory Board,
Dayton, Ohio.
Trustee: University of Dayton, Chaminade-Julienne
High School, Dayton, Ohio.
Member: Area Progress Council.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
COMMON SHARES
BENEFICIALLY
OWNED AT
JANUARY 31,
PRINCIPAL OCCUPATION AND OTHER INFORMATION 1995 (1)
- -------------------------------------------------------------------------------------
<S> <C> <C>
CLASS OF 1997
- -------------------------------------------------------------------------------------
ERNIE GREEN, Age 56, Director since 1991. 14,762
[PHOTO] President and Chief Executive Officer, Ernie Green
Industries, Dayton, Ohio, automotive components
manufacturer.
Director: Bank One, Dayton, NA, Day-Med Health
Maintenance Plan, Inc., WPTD-TV, The Duriron
Company.
Trustee: Central State University, Dayton Area
Chamber of Commerce, The Ronald McDonald Childrens
Charities.
DAVID R. HOLMES, Age 54, Director since 1994. 1,670
[PHOTO] Chairman, President and Chief Executive Officer,
The Reynolds and Reynolds Company, Dayton, Ohio,
information management systems.
Director: Bank One, Dayton, NA.
Advisor: J. L. Kellogg Graduate School of
Management, Northwestern University.
Co-Chair: Downtown Dayton Partnership.
Member: Dayton Business Committee, Area Progress
Council
BURNELL R. ROBERTS, Age 67, Director since 1987. 16,334
[PHOTO] Chairman, Sweetheart Holdings, Inc.
Retired Chairman of the Board and Chief Executive
Officer, The Mead Corporation, Dayton, Ohio,
forest products producer.
Director: Armco Inc., National City Corporation,
The Perkin-Elmer Corporation, Rayonier, Inc.,
Universal Protective Plastics, Inc.
<FN>
- ------------
(1) The number of shares shown represents in each instance less than 1% of the
outstanding Common Shares. There were 212,245 shares or 0.20% of the total
number of Common Shares beneficially owned by all directors and executive
officers of DPL Inc. and DP&L as a group at January 31, 1995. The number of
shares shown includes Common Shares transferred to the Master Trust for
non-employee directors pursuant to the Directors' Deferred Stock
Compensation Plan.
</TABLE>
5
<PAGE>
The three candidates receiving the greatest number of votes will be elected
as directors. Abstentions and broker non-votes will be treated as non-votes.
Under Ohio law, if a shareholder gives written notice to the President, a
Vice President or the Secretary, not less than 48 hours before the Annual
Meeting, that such shareholder desires the voting at the election of directors
to be cumulative, and if an announcement of the giving of such notice is made
upon the convening of the meeting by or on behalf of the shareholder giving such
notice, then shareholders will be entitled to give one candidate as many votes
as the number of directors to be elected multiplied by the number of their
shares, or to distribute their votes on the same principle among two or more
candidates. In the event that directors are elected by cumulative voting and
cumulated votes represented by proxies solicited hereby are insufficient to
elect all the nominees, then the Proxy Committee will vote such proxies
cumulatively for the election of as many of such nominees as possible and in
such order as the Proxy Committee may determine.
INFORMATION CONCERNING THE BOARD OF DIRECTORS AND ITS COMMITTEES FOR 1994
The Board of Directors of DPL Inc. met on seven occasions and the Board of
Directors of DP&L met on six occasions during 1994. The three standing
committees of DPL Inc. -- Executive, Finance and Audit Review and Compensation
and Management Review -- held eight meetings in total and the standing committee
of DP&L -- Community and External Relations -- met two times in total. The
attendance of all Board members was 100%.
COMMITTEES OF DPL INC.
FINANCE AND AUDIT REVIEW COMMITTEE
This Committee consists of the following non-employee members of the Board:
Thomas J. Danis, Chairman, Ernie Green, Jane G. Haley and David R. Holmes. Peter
H. Forster and Allen M. Hill are non-voting members.
The Finance and Audit Review Committee oversees the financial plans,
approves the terms and conditions of financial arrangements and recommends to
the Board of Directors such actions and policies that will best accommodate DPL
Inc.'s objectives and operating strategies while maintaining its sound fiscal
health. It also provides direct communication between DPL Inc.'s internal
auditors, the independent auditors, Price Waterhouse, and the Board of
Directors. It is intended to assure the independent auditors the freedom,
cooperation and opportunity necessary to accomplish their functions. It is also
intended to assure that appropriate action is taken on the recommendations of
the auditors. This Committee met four times during 1994.
COMPENSATION AND MANAGEMENT REVIEW COMMITTEE
This Committee consists of the following non-employee members of the Board:
Burnell R. Roberts, Chairman, James F. Dicke, II and W August Hillenbrand.
6
<PAGE>
The Compensation and Management Review Committee has the broad
responsibility to see that the officers and key management personnel of DPL Inc.
and its subsidiaries perform in accordance with corporate objectives, and are
effectively compensated in terms of salaries, supplemental compensation and
benefits which are internally equitable and externally competitive. The
Committee administers the deferred and incentive compensation plans for
directors and officers. This Committee met three times during 1994.
EXECUTIVE COMMITTEE
This Committee consists of the following members of the Board: Peter H.
Forster, Chairman, James F. Dicke, II, W August Hillenbrand and Burnell R.
Roberts.
The principal duties of this Committee include evaluating executive
management development, succession and organizational structure in addition to
director selection, tenure and succession. This Committee also serves on a
standby basis for use in an emergency which requires immediate action. This
Committee met one time during 1994.
The non-employee members of the Executive Committee act as a nominating
committee for the Board of Directors and endeavor to identify, seek out, and if
necessary actively recruit, the best available candidates who, in the judgment
of the Committee, have the character, education, training, experience and proven
accomplishments which give promise of significant contribution to the
responsible and profitable conduct of DPL Inc.'s business in the interest of all
shareholders, customers and employees. This Committee considers qualified
nominees submitted to DPL Inc. by shareholders.
COMMITTEE OF DP&L
COMMUNITY AND EXTERNAL RELATIONS COMMITTEE
This Committee consists of the following non-employee members of the Board:
Jane G. Haley, Chairman, Ernie Green and David R. Holmes. Peter H. Forster and
Allen M. Hill are non-voting members.
The Community and External Relations Committee provides for a periodic
review of DP&L's relations with all sectors of the community with which it is
vitally concerned -- shareholders, customers, governmental bodies and agencies,
political groups, regulatory agencies, elected officials and the media. This
Committee met two times during 1994.
OTHER MATTERS
DPL Inc. directors, all of whom are also directors of DP&L, receive no
annual fee for their services as directors of DPL Inc. Directors of DP&L who are
not employees receive $12,000 annually for services as a director, $600 for
attendance at a Board meeting, and $500 for attendance at a committee meeting or
operating session of DPL Inc. and DP&L. Members of the Executive Committee
receive $2,000 annually for services on that committee. Each committee chairman
receives
7
<PAGE>
an additional $1,600 annually. Directors who are not employees of DP&L also
participate in a Directors' Deferred Stock Compensation Plan (the "Stock Plan")
under which a number of shares are awarded to directors each year. All shares
awarded under the Stock Plan are transferred to a grantor trust (the "Master
Trust") maintained by DPL Inc. to secure its obligations under various
directors' and officers' deferred and incentive compensation plans. Receipt of
the shares or cash equal to the value thereof is deferred until the participant
retires as a director or until such other time as designated by the participant
and approved by the Committee. In the event of a change of control (as defined
in the Stock Plan), the authority and discretion which is exercisable by the
Compensation and Management Review Committee, will be exercised by the trustees
of the Master Trust. In April 1994, each non-employee director was awarded 1,500
shares.
DPL Inc. maintains a Deferred Compensation Plan (the "Compensation Plan")
for non-employee directors in which payment of directors' fees may be deferred.
The Compensation Plan also includes a supplementary deferred income program
which provides that DPL Inc. will match $5,000 annually of deferred directors'
fees for a maximum of ten years. Under the supplementary program, a $150,000
death benefit is provided until such director ceases to participate in the
Compensation Plan. Under the standard deferred income program directors are
entitled to receive a lump sum payment or payments in approximately equal
installments over a ten-year period. A director may elect payment in either cash
or common shares. Participants in the supplementary program are entitled to
receive deferred payments over a ten-year period in equal installments. The
Compensation Plan provides that in the event of a change in control of DPL Inc.,
as defined in the Compensation Plan, all benefits provided under the
supplementary deferred income program become immediately vested without the need
for further contributions by the participants and the discretion which, under
the Compensation Plan, is exercisable by the Chief Executive Officer of DPL Inc.
will be exercised by the trustees of the Master Trust. If the consent of the
Chief Executive Officer of DPL Inc. is obtained, individuals who have attained
the age of 55 and who are no longer directors of DPL Inc. may receive a lump sum
payment of amounts credited to them under the supplementary deferred income
program.
8
<PAGE>
EXECUTIVE COMPENSATION
COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION
DPL Inc. has designed its executive compensation programs to create a strong
and direct link between the compensation paid to senior executives and current
and long-term level of company performance. The program also recognizes each
executive's individual contribution to that performance.
There are three elements of DPL Inc.'s executive compensation program. Each
element is designed to reward different aspects of executive performance.
1. Base salary and salary increases recognize competitive pay levels,
sustained long-term value creation and contributions by individual
executives.
2. Annual incentives, which are awarded through the Management
Incentive Compensation Program, reward the achievement of operational and
strategic milestones. Actual objectives vary from year to year depending on
Company priorities and are different for each executive. Each executive has
three or four individual objectives which are weighted equally. The
individual objectives for 1994 were related to maintaining competitive
energy prices and providing superior customer service. They included
reductions in operating expenses, outside service costs, fuel inventory
expenses and capital expenditures, as well as improvements in plant
productivity, customer satisfaction and earnings per share. Over half of
each executive's annual incentive payout is determined based on their
performance as compared to their individual objectives. The remaining
portion of the executive's annual incentive payout is based on the executive
group's aggregate performance of their individual objectives. For 1994,
executives generally satisfied their individual objectives. Target incentive
awards range from thirty to sixty percent of base salary, depending upon the
executive's position. Executives can earn from zero to one and a half times
the target amount.
3. DPL Inc.'s long-term stock incentive unit ("SIU") plan rewards
longer-term financial results and total return to shareholders. The actual
number of SIU's earned is based on return on equity as compared with the
performance of the 80 largest electric and natural gas utilities.
Base salaries are positioned halfway between the electric and natural gas
utility industry 75th percentile and general industry median levels for a
company of DPL Inc.'s size. Target short and long-term incentive opportunities
are positioned at the general industry median. This pay mix will result in over
half of the target total compensation for each executive to vary with
performance. In all cases, long-term incentives are paid only when return on
equity performance exceeds electric and natural gas utility industry medians.
For compensation purposes, a broad based group of utility and general industrial
companies is used by DPL Inc.'s compensation consultants.
9
<PAGE>
Similar to the other executives, the Chief Executive Officer's total
compensation potential is based on consideration of competitive general industry
and electric and natural gas utility industry practices. The Chief Executive
Officer's annual and long-term incentive programs are variable enough to provide
actual total compensation at median general industry levels only if DPL Inc.'s
performance is in the top quartile of electric and natural gas utilities. If DPL
Inc.'s return on equity performance is at the median of the electric and natural
gas utility industry or lower, the Chief Executive Officer's actual total
compensation will be at or close to electric and natural gas utility industry
median levels.
Overall, Mr. Forster exceeded his annual performance objectives for 1994.
Under the Management Incentive Compensation Program, Mr. Forster received a
bonus based seventy-five percent on DPL Inc.'s performance and twenty-five
percent on the Committee's assessment of his individual performance. Company
performance objectives were based on equal consideration of earnings per share
performance, which objective was satisfied, and the aggregate performance of the
executive group versus their individual objectives. The Committee based its
assessment of Mr. Forster's individual performance on consideration of several
factors, including DPL Inc.'s performance versus other electric and natural gas
utilities, investment community evaluations and progress on management
development and succession planning. Mr. Forster was contingently awarded 30,700
SIU's in 1994 based on consideration of median general industry long-term
incentive opportunities and the overall competitiveness of the remainder of his
compensation package. Mr. Forster will receive these SIU's in 1998 based on the
extent by which DPL Inc.'s average return on common equity during 1995, 1996 and
1997 exceeds the median for other electric and natural gas utilities.
Based on current compensation levels and the present structure of DPL Inc.'s
executive compensation programs, the Committee believes that the compensation
payable to executives will not be subject to the limitation on deductibility
imposed by the Omnibus Budget Reconciliation Act of 1993.
The Committee believes that DPL Inc.'s annual and long-term incentive plan
goals have contributed to the strong stock market performance shown in the
performance chart in the next section. DPL Inc.'s total return to shareholders
between 1989 and 1994 was significantly higher than total return to shareholders
for both the utility industry and the Dow Jones Industrials.
Compensation Management Review
Committee
Burnell R. Roberts, Chairman
James F. Dicke, II
W August Hillenbrand
10
<PAGE>
PERFORMANCE COMPARISON
COMPARISON OF FIVE YEAR CUMULATIVE RETURN
AMONG DPL INC., DOW JONES INDUSTRIAL INDEX AND
DOW JONES UTILITY INDEX AND THE 80 LARGEST UTILITIES
<TABLE>
<CAPTION>
MEASURING POINT
----------------------------------------------
MEASUREMENT PERIOD DOW JONES
(FISCAL YEAR INDUSTRIAL DOW JONES 80 LARGEST
COVERED) DPL INC. INDEX UTILITY INDEX UTILITIES
- -------------------- -------- --------- ------------- ----------
<S> <C> <C> <C> <C>
12/31/89 $ 1,000 $ 1,000 $ 1,000 $ 1,000
12/31/90 1,031 994 955 1,015
12/31/91 1,490 1,236 1,099 1,305
12/31/92 1,811 1,328 1,144 1,377
12/31/93 1,997 1,553 1,253 1,540
12/31/94 2,105 1,631 1,059 1,387
</TABLE>
11
<PAGE>
SUMMARY COMPENSATION TABLE
Set forth below is certain information concerning the compensation of the
Chief Executive Officer and each of the other four most highly compensated
executive officers of DPL Inc. and its major subsidiary DP&L, for the last three
fiscal years, for services rendered in all capacities to DPL Inc. and its
subsidiaries, including DP&L.
<TABLE>
<CAPTION>
LONG TERM
ANNUAL COMPENSATION
COMPENSATION -------------------
------------------ RESTRICTED STOCK ALL OTHER
SALARY BONUS(1) UNIT AWARDS(2) COMPENSATION(3)
NAME AND PRINCIPAL POSITION YEAR ($) ($) ($) ($)
- ---------------------------------------- ---- ------- --------- ------------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Peter H. Forster 1994 526,000 318,000 708,000 ('95-97) 1,000
Chairman, President and Chief 1993 496,000 298,000 580,000 ('94-96) 1,000
Executive Officer--DPL Inc. 1992 496,000 298,000 436,000 ('93-95) 0
Chairman--DP&L
Allen M. Hill 1994 336,000 205,000 333,000 ('95-97) 1,000
President and Chief Executive 1993 315,000 193,000 249,000 ('94-96) 1,000
Officer--DP&L 1992 294,000 180,000 183,000 ('93-95) 0
Stephen F. Koziar, Jr. 1994 198,000 91,000 124,000 ('95-97) 1,000
Group Vice President and 1993 189,000 86,000 103,000 ('94-96) 1,000
Secretary--DPL Inc. and DP&L 1992 181,000 83,000 86,000 ('93-95) 0
Thomas M. Jenkins 1994 188,000 87,000 239,000 ('95-97) 1,000
Group Vice President and 1993 172,000 81,000 188,000 ('94-96) 1,000
Treasurer--DPL Inc. and DP&L 1992 150,000 72,000 150,000 ('93-95) 0
H. Ted Santo 1994 173,000 81,000 142,000 ('95-97) 1,000
Group Vice President--DP&L 1993 151,000 73,000 192,000 ('94-96) 1,000
1992 129,000 64,000 153,000 ('93-95) 0
<FN>
- ------------
(1) Amounts in this column represent awards made under the Management Incentive
Compensation Program. Awards are based on achievement of specific
predetermined operating and management goals in the year indicated and paid
in the year earned or in the following year.
(2) Amounts shown in this column have not been paid, but are contingent on
performance and represent the dollar value of restricted stock incentive
units ("SIU's") awarded to the named executive officer under the Management
Stock Incentive Plan ("MSIP") based on the closing price of a DPL Inc.
common share on the New York Stock Exchange -- Consolidated Transactions
Tape on the date of award. The SIU's for 1992, 1993 and 1994 vest only to
the extent that the DPL Inc. average return on equity ("ROE") over a
three-year performance period is above the RRA industry median.
Depending on the performance of DPL Inc., these SIU's vest in amounts
ranging from 0% to 100% of the target award at an ROE between 0 and 100
basis points above median ROE and from 100% to 150% of target award at an
ROE between 100 and 200 basis points above median ROE.
</TABLE>
12
<PAGE>
<TABLE>
<S> <C>
No units vest if the three-year average ROE is below 10%. Amounts shown for
1992, 1993 and 1994 reflect target awards. For each SIU which vests, a
participant receives the cash equivalent of one DPL Inc. common share plus
dividend equivalents from the date of award. Prior to payout at retirement,
an individual may elect to convert a portion of vested SIU's to a cash
equivalent and accrue interest thereon. All payouts of vested SIU's under
the MSIP are deferred until retirement.
(3) Amounts in this column represent employer matching contributions on behalf
of each named executive under the DP&L Employee Savings Plan made to the
DPL Inc. Employee Stock Ownership Plan.
</TABLE>
CERTAIN SEVERANCE PAY AGREEMENTS
DPL Inc. entered into severance pay agreements with each of Messrs. Forster,
Hill, Koziar, Jenkins and Santo providing for the payment of severance benefits
in the event that the individual's employment with DPL Inc. or its subsidiaries
is terminated under specified circumstances within three years after a change in
control of DPL Inc. or DP&L (generally, defined as the acquisition of 15% or
more of the voting securities or certain mergers or other business
combinations). The agreements entered into between 1987 and 1991 require the
individuals to remain with DPL Inc. throughout the period during which any
change of control is pending in order to help put in place the best plan for the
shareholders. The principal severance benefits under each agreement include
payment of the following: (i) the individual's full base salary and accrued
benefits through the date of termination and any awards for any completed or
partial period under the MICP and the individual's award for the current period
under the MICP (or for a completed period if no award for that period has yet
been determined) fixed at an amount equal to his average annual award for the
preceding three years; (ii) 300% of the sum of the individual's annual base
salary at the rate in effect on the date of termination (or, if higher, at the
rate in effect as of the time of the change in control) plus the average amount
awarded to the individual under the MICP for the three preceding years; (iii)
all awarded or earned but unpaid SIUs; and (iv) continuing medical, life, and
disability insurance. In the event any payments under these agreements are
subject to an excise tax under the Internal Revenue Code of 1986, the payments
will be adjusted so that the total payments received on an after-tax basis will
equal the amount the individual would have received without imposition of the
excise tax. The severance pay agreements are effective for one year but are
automatically renewed each year unless DPL Inc. or the participant notifies the
other one year in advance of its or his intent not to renew. DPL Inc. has agreed
to secure its obligations under the severance pay agreements by transferring
required payments to the Master Trust.
13
<PAGE>
PENSION PLANS
The following table sets forth the estimated total annual benefits payable
under the DP&L retirement income plan and the supplemental executive retirement
plan to executive officers at normal retirement date (age 65) based upon years
of accredited service and final average annual compensation (including base and
incentive compensation) for the three highest years during the last ten:
<TABLE>
<CAPTION>
TOTAL ANNUAL RETIREMENT BENEFITS
FOR
YEARS OF ACCREDITED SERVICE AT AGE
65
FINAL AVERAGE -----------------------------------
ANNUAL EARNINGS 10 YEARS 15 YEARS 20-30 YEARS
----------------- ---------- ---------- -----------
<S> <C> <C> <C>
$ 200,000....................................... $ 53,000 $ 79,000 $ 105,500
400,000....................................... 110,000 164,500 219,500
600,000....................................... 167,000 250,000 333,500
800,000....................................... 224,000 335,500 447,500
1,000,000....................................... 281,000 421,000 561,500
</TABLE>
The years of accredited service for the named executive officers are Mr.
Forster -- 30 yrs.; Mr. Hill -- 25 yrs.; Mr. Koziar -- 25 yrs.; Mr. Jenkins --
17 yrs. and Mr. Santo -- 19 yrs. Years of service under the retirement income
plan are capped at 30 years, however, the retirement and supplemental plans,
taken together, can provide full benefits after 20 years of accredited service.
Benefits are computed on a straight-life annuity basis, are subject to deduction
for Social Security benefits and may be reduced by benefits payable under
retirement plans of other employers. For each year an individual retires prior
to age 62, benefits under the supplemental plan are reduced by 3% or 21% for
early retirement at age 55.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
As of January 31, 1995 there are no persons known by the Board of Directors
of the Company to be the beneficial owner of more than 5% of the outstanding
shares of Common Stock of DPL Inc.
14
<PAGE>
SECURITY OWNERSHIP OF CERTAIN EXECUTIVE OFFICERS
Set forth below is information concerning the beneficial ownership of shares
of Common Stock of DPL Inc. by each executive officer of DPL Inc. or DP&L named
in the Summary Compensation Table (other than executive officers who are
directors of DPL Inc. whose security ownership is found under "Election of
Directors") as of January 31, 1995. Please refer to Note (1) on Page 5 for the
security ownership of all directors and executive officers of DPL Inc. and DP&L.
<TABLE>
<CAPTION>
NAME OF AMOUNT AND NATURE OF PERCENT OF
EXECUTIVE OFFICER BENEFICIAL OWNERSHIP CLASS
- ------------------------ -------------------- --------------
<S> <C> <C>
Stephen F. Koziar, Jr. 6,979 shares *
Thomas M. Jenkins 5,175 shares *
H. Ted Santo 1,713 shares *
<FN>
- ------------
*Less than one percent
</TABLE>
INDEPENDENT PUBLIC ACCOUNTANTS
Price Waterhouse served as independent public accountants of DPL Inc. for
the year 1994 and has been appointed as independent public accountants for 1995.
A representative of Price Waterhouse will be present at the Annual Meeting with
the opportunity to make a statement if he desires to do so and to respond to
appropriate questions from shareholders.
SHAREHOLDER PROPOSALS
A proposal by a shareholder intended for inclusion in the proxy materials of
DPL Inc. for the 1996 Annual Meeting of Shareholders must be received by DPL
Inc. at P.O. Box 1247, Dayton, Ohio 45401, Attn: Secretary, on or before
November 1, 1995 in order to be considered for such inclusion.
OTHER BUSINESS
The Board of Directors does not intend to present, and has no knowledge that
others will present, any other business at the meeting. However, if any other
matters are properly brought before the meeting, it is intended that the holders
of proxies will vote thereon in their discretion.
By order of the Board of Directors,
[SIGNATURE]
STEPHEN F. KOZIAR, JR.
GROUP VICE PRESIDENT AND SECRETARY
15
<PAGE>
NOTICE OF
ANNUAL
MEETING
OF SHAREHOLDERS
APRIL 18, 1995
AND
PROXY
STATEMENT
[LOGO]
DPL INC.
DAYTON, OHIO
<PAGE>
DPL INC.
P PROXY SOLICITED BY THE BOARD OF DIRECTORS
R
O FOR 1995 ANNUAL MEETING OF SHAREHOLDERS
X
Y
Peter H. Forster, James F. Dicke, II, W August Hillenbrand and Burnell R.
Roberts or any of them with full power of substitution, are hereby appointed
proxies to vote as specified at the Annual Meeting of Shareholders of DPL Inc.
on Tuesday, April 18, 1995, at 10:00 A.M., and at any adjournments thereof, all
shares of Common Stock which the undersigned is entitled to vote and in their
discretion upon any other matters which may properly come before the meeting.
UNLESS OTHERWISE MARKED, YOUR PROXY WILL BE VOTED FOR THE PROPOSAL BY
SIMPLY SIGNING YOUR NAME ON THE REVERSE SIDE AND RETURNING THIS CARD.
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
<PAGE>
/X/ Please mark
votes as in
this example.
This proxy is solicited on behalf of the Board of Directors. If no boxes are
marked, your vote will be cast as recommended by the Board of Directors by
simply signing your name below and returning this card.
1. Election of Three Directors
Nominees: Thomas J. Danis, Allen M. Hill and W August Hillenbrand
FOR WITHHELD
/ / / /
For, except vote withheld from the following nominee(s)
_________________________________
The Annual Meeting of Shareholders will be held at Edison Community College,
Piqua, Ohio. To request an attendance card for the meeting, please mark below:
MARK / /
HERE FOR
ATTENDANCE
CARD
Please sign exactly as your name appears. If acting as attorney, executor,
trustee, or in a representative capacity, sign name and title.
Signature: ____________________________________________Date___________________
Signature: ____________________________________________Date___________________
<PAGE>
DPL INC. 401K-DPL INC.
STOCK FUND
P PROXY SOLICITED BY THE BOARD OF DIRECTORS
R
O FOR 1995 ANNUAL MEETING OF SHAREHOLDERS
X
Y
Peter H. Forster, James F. Dicke, II, W August Hillenbrand and Burnell R.
Roberts or any of them with full power of substitution, are hereby appointed
proxies to vote as specified at the Annual Meeting of Shareholders of DPL Inc.
on Tuesday, April 18, 1995, at 10:00 A.M., and at any adjournments thereof, all
shares of Common Stock which the undersigned is entitled to vote and in their
discretion upon any other matters which may properly come before the meeting.
UNLESS OTHERWISE MARKED, YOUR PROXY WILL BE VOTED FOR THE PROPOSAL BY
SIMPLY SIGNING YOUR NAME ON THE REVERSE SIDE AND RETURNING THIS CARD.
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
<PAGE>
/X/ Please mark
votes as in
this example.
This proxy is solicited on behalf of the Board of Directors. If no boxes are
marked, your vote will be cast as recommended by the Board of Directors by
simply signing your name below and returning this card.
1. Election of Three Directors
Nominees: Thomas J. Danis, Allen M. Hill and W August Hillenbrand
FOR WITHHELD
/ / / /
For, except vote withheld from the following nominee(s)
_________________________________
The Annual Meeting of Shareholders will be held at Edison Community College,
Piqua, Ohio. To request an attendance card for the meeting, please mark below:
MARK / /
HERE FOR
ATTENDANCE
CARD
Please sign exactly as your name appears. If acting as attorney, executor,
trustee, or in a representative capacity, sign name and title.
Signature: ____________________________________________Date___________________
Signature: ____________________________________________Date___________________
<PAGE>
DPL INC. ESOP-DPL INC.
P PROXY SOLICITED BY THE BOARD OF DIRECTORS
R
O FOR 1995 ANNUAL MEETING OF SHAREHOLDERS
X
Y
Peter H. Forster, James F. Dicke, II, W August Hillenbrand and Burnell R.
Roberts or any of them with full power of substitution, are hereby appointed
proxies to vote as specified at the Annual Meeting of Shareholders of DPL Inc.
on Tuesday, April 18, 1995, at 10:00 A.M., and at any adjournments thereof, all
shares of Common Stock which the undersigned is entitled to vote and in their
discretion upon any other matters which may properly come before the meeting.
UNLESS OTHERWISE MARKED, YOUR PROXY WILL BE VOTED FOR THE PROPOSAL BY
SIMPLY SIGNING YOUR NAME ON THE REVERSE SIDE AND RETURNING THIS CARD.
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
<PAGE>
/X/ Please mark
votes as in
this example.
This proxy is solicited on behalf of the Board of Directors. If no boxes are
marked, your vote will be cast as recommended by the Board of Directors by
simply signing your name below and returning this card.
1. Election of Three Directors
Nominees: Thomas J. Danis, Allen M. Hill and W August Hillenbrand
FOR WITHHELD
/ / / /
For, except vote withheld from the following nominee(s)
_________________________________
The Annual Meeting of Shareholders will be held at Edison Community College,
Piqua, Ohio. To request an attendance card for the meeting, please mark below:
MARK / /
HERE FOR
ATTENDANCE
CARD
Please sign exactly as your name appears. If acting as attorney, executor,
trustee, or in a representative capacity, sign name and title.
Signature: ____________________________________________Date___________________
Signature: ____________________________________________Date___________________
